Canadian Housing Starts Update
Canadian housing starts slipped to a seasonally adjusted annual rate of 150,100 units in September, down from the August figure of 157,300. Within the GTA, starts rose 25 per cent to 30,200 units. Both national and GTA numbers were bolstered by increases in single-detached starts, which rose 16.8 and 46.2 per cent respectively. In line with CMHC’s housing starts release, Statistics Canada reported that residential building permits rose 11.2 per cent in August compared to July.
Analysis:
The fact that the single-detached segment of the new home market has been growing is not surprising, especially where GTA starts are concerned. Low-rise new home sales, as reported by RealNet Canada, were strong in the Spring and Summer months and are now converting into starts. As the resale home market tightened up in the GTA, an increasing number of home buyers spilled over into the new low-rise home market. Expect high-rise starts to pick up later this year and into 2010, as the back log of permits that built up during the City of Toronto labour disruption translate into new construction.
